Much of life is lived in the here and now, but it definitely pays (literally!) to think about the future. Sure, right now you are young, able-bodied, and able and willing and even — dare it be said — eager to work, but what happens when you reach retirement age and you don’t want to work anymore? Or what if you’re close to retirement age but can’t work anymore? What do you do then? Well, many individuals turn to retirement accounts and other savings accounts for money to live off of. But in order to have money to live off of, you need to have saved. And one of the best ways to save money is by starting a simple savings account, and then moving on to investments.
Investing is all about taking money that you have and giving it to one or more companies to use for launching or expansion. When those companies grow (courtesy of your contributed money), your savings grows, because in return for the invested funds, you’ll either have a share of the company’s earnings, or, if you prefer to be a silent partner investor, you’ll receive a flat payment — usually a percentage of earnings, plus interest — every month for the life of the company.
But let’s not get ahead of ourselves, and instead, let’s focus on the basics of investing: a savings account. Choose an interest-bearing savings account to place your money into, and the financial institution the account is with will use that money for investment purposes. In return, your money will earn interest for as long as it is in the account. The more money you have and the longer you leave it to invest, the more interest you’ll earn.
You should also configure a 401-k plan. This is a special government-created, government-overseen retirement plan for you, but it may also be funded by your employer. Some employers do not match any 401-k plan contributions, while others may match up to 100% of what you contribute, though usually there is a limit – say, no more than 2.5% of your paycheck.
If you want to play with the big boys in the investment world, you’ll want to reach out to an investment banker, such as CEO John Ferraro of Ernst & Young. These investment bankers and company-growing firms serve to help you — you meaning individuals as well as companies — grow their funds by assisting with wise investments. If you want to know what’s happening in the stock market and how to play your cards, an investment banker or an investment firm is the perfect source to turn to. Together you’ll come up with a plan. This plan will be customized to your needs, wants, and abilities. Whether you have a couple of thousand dollars to invest or twenty-five thousand dollars to invest, and investment banker will help you create a portfolio of potential investments, and then together you’ll choose the ones to move forward with. Be patient, and you’ll see the positive results of these investments in the months and years to come.